Critical Survey: Paragon 28 (NYSE:FNA) vs. enVVeno Medical (NASDAQ:NVNO)

enVVeno Medical (NASDAQ:NVNO) and Paragon 28 (NYSE:FNA) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares enVVeno Medical and Paragon 28″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
enVVeno Medical	N/A	N/A	-$23.52 million	($1.29)	-2.50
Paragon 28	$216.39 million	5.04	-$57.53 million	($0.74)	-17.60

enVVeno Medical has higher earnings, but lower revenue than Paragon 28. Paragon 28 is trading at a lower price-to-earnings ratio than enVVeno Medical, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.7% of enVVeno Medical shares are owned by institutional investors. Comparatively, 63.6% of Paragon 28 shares are owned by institutional investors. 16.0% of enVVeno Medical shares are owned by company insiders. Comparatively, 15.3% of Paragon 28 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares enVVeno Medical and Paragon 28’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
enVVeno Medical	N/A	-48.72%	-45.96%
Paragon 28	-25.31%	-37.90%	-18.22%

Analyst Recommendations

This is a summary of recent ratings and target prices for enVVeno Medical and Paragon 28, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
enVVeno Medical	0	0	0	0	0.00
Paragon 28	0	4	2	0	2.33

Paragon 28 has a consensus target price of $14.60, suggesting a potential upside of 12.09%. Given Paragon 28’s stronger consensus rating and higher possible upside, analysts plainly believe Paragon 28 is more favorable than enVVeno Medical.

Volatility & Risk

enVVeno Medical has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Paragon 28 has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Paragon 28 beats enVVeno Medical on 9 of the 13 factors compared between the two stocks.

About enVVeno Medical

enVVeno Medical Corporation (Nasdaq: NVNO) is an medical device company focused on the development of innovative bioprosthetic (tissue-based) devices to improve the standard of care in the treatment of venous disease. The company’s lead product, the VenoValve®️, is a first-in-class, surgical implant being developed for the treatment of severe deep venous Chronic Venous Insufficiency (CVI). Deep venous CVI occurs when valves inside of the deep veins of the leg become damaged, resulting in insufficient blood being returned to the heart. The malfunctioning vein valves cause blood to flow backwards (reflux) and pool in the lower leg, increasing the pressure within the veins of the leg (venous hypertension). In the most severe cases, CVI can lead to venous ulcers (open skin sores) that become chronic and difficult to heal. The VenoValve is implanted in the femoral vein and works as a replacement venous valve, designed to reduce reflux and venous hypertension, and to restore proper directional blood flow back to the heart. With severe deep venous CVI impacting an estimated 2.4 million people in the U.S., who have no effective treatment options, the VenoValve has received Breakthrough Device Designation from the U.S. Food and Drug Administration, and is currently being evaluated in the SAVVE U.S. clinical trial.

About Paragon 28

Paragon 28, Inc. develops, distributes, and sells foot and ankle surgical systems in the United States and internationally. It offers plating systems, including gorilla plating systems, such as lisfranc, lapidus, lateral column, calcaneus slide, and naviculocuneiform (NC) fusion plating systems; baby gorilla plate-specific screws, navicular fracture plates, and 5th metatarsal hook plates; and silverback plating systems. The company also provides precision guide technology for various procedures consisting of fusion, a procedure to address bunion deformities that fuses two bones on the big toe; first tarsometatarsal arthrodesis; and metatarsal osteotomy for bunion correction, medial column beaming for charcot foot reconstruction, ankle fusion plating, and NC joint arthrodesis. In addition, it offers monster, mini monster, and joust beaming screw systems for use in bone reconstruction, osteotomy, arthrodesis, joint fusion, ligament fixation, fracture repair, and fracture fixation; APEX 3D total ankle replacement systems; and total talus spacers to replace the talus and bone in the ankle that connects the leg and foot. Further, the company provides forefoot or hallux valgus correction systems, including phantom intramedullary nail systems for the treatment of severe hallux valgus; and various orthobiologics comprising bone wedges, grafts, demineralized bone matrices, bone void fillers, synthetic materials, amniotic products, and a biocompatible collagen matrix, as well as PRESERVE bone graft systems for homologous application. Additionally, it offers soft tissue fixation systems, titanium sprayed polyetheretherketone implants, nitinol staple systems, stabilization systems, and curved instruments. The company serves hospitals and ambulatory surgery centers through a network of sales representatives and stocking distributors. Paragon 28, Inc. was founded in 2010 and is headquartered in Englewood, Colorado.